marketing project of pepsi

8/17/2019 Marketing Project of Pepsi

1/45

Final Marketing Project

Submitted to:

Ma’am Remissa

Submitted by:

Muhammad Hassan Ali

Sajawal Waseem

Omer Hameed

Junaid Chaudhry


2/45

Contents

• Product itself

• SWOT Analysis

• STP Model

• Taret Strateies

• Com!etition

• P"C

• Product Strateies

• Pricin Strateies

• #istri$ution

• Promotion Strateies

• Conclusion

• References


3/45

%

Abstract:This re!ort !ro&ides an analysis and e&aluation of the Mar'etin Stratey for

Pe!si( Methods of analysis include Mar'et Sementation) Mar'et Taretin) andMar'et Positionin of Pe!si( *nto this analysis we ha&e tried to show how Pe!sisement their mar'et $asin on different &aria$les( Their taret mar'et which they

ser&e( We also discuss a$out Pe!si’s internal and e+ternal en&ironment(TheirPosition in the mar'et and how do they differentiate themsel&es to ma'e a !ositionin their customer mind) their stratey of !ositionin in mar'et we tried to i&e a

!ositionin statement of Pe!si and ended the whole re!ort with a conclusion and arecommendation(


4/45

Produt itself

History Of Pespsi

The drin' Pe!si was first introduced as ,-rad.s #rin', in /ew -ern) /orth

Carolina) 0nited States) in 1234 $y Cale$ -radham) who made it at his drustorewhere the drin' was sold( *t was renamed Pe!si Cola in 1232) named after thediesti&e en5yme !e!sin and 'ola nutsused in the reci!e( The oriinal reci!e also

included suar and &anilla( -radham souht to create a fountain drin' that wasa!!ealin and would aid in diestion and $oost enery(

1313 news!a!er ad for Pe!si6Cola

!la7ue at 89: Middle Street) /ew -ern) /C

http://en.wikipedia.org/wiki/New_Bern,_North_Carolinahttp://en.wikipedia.org/wiki/New_Bern,_North_Carolinahttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Caleb_Bradhamhttp://en.wikipedia.org/wiki/Pepsinhttp://en.wikipedia.org/wiki/Kola_nutshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Caleb_Bradhamhttp://en.wikipedia.org/wiki/Pepsinhttp://en.wikipedia.org/wiki/Kola_nutshttp://en.wikipedia.org/wiki/New_Bern,_North_Carolinahttp://en.wikipedia.org/wiki/New_Bern,_North_Carolina


5/45

*n 13;4) -radham mo&ed the $ottlin of Pe!si6Cola from his drustore to a rentedwarehouse( That year) -radham sold


6/45

Pe!si

Pe!si.s success under @uth came while the "oft Candy $usiness was falterin( Since he had initially used

"oft.s finances and facilities to esta$lish the new Pe!si success) the near6$an'ru!t "oft Com!any sued

@uth for !ossession of the Pe!si6Cola com!any( A lon leal $attle) @uth &( "oft) then ensued) with the

case reachin the #elaware Su!reme Court and ultimately endin in a loss for @uth(

/iche mar'etin

http://en.wikipedia.org/wiki/Guth_v._Lofthttp://en.wikipedia.org/wiki/Guth_v._Lofthttp://en.wikipedia.org/wiki/Guth_v._Lofthttp://en.wikipedia.org/wiki/Delaware_Supreme_Courthttp://en.wikipedia.org/wiki/Delaware_Supreme_Courthttp://en.wikipedia.org/wiki/Delaware_Supreme_Courthttp://en.wikipedia.org/wiki/Guth_v._Lofthttp://en.wikipedia.org/wiki/Delaware_Supreme_Court


7/45

13=;s ad&ertisement s!ecifically taretin African Americans) A younRon -rown is the $oy reachinfor a $ottle

Walter Mac' was named the new President of Pe!si6Cola and uided the com!any throuh the 13=;s(

Mac') who su!!orted !roressi&e causes) noticed that the com!any.s stratey of usin ad&ertisin for a

eneral audience either inored African Americans or used ethnic stereoty!es in !ortrayin $lac's( He

reali5ed African Americans were an unta!!ed niche mar'et and that Pe!si stood to ain mar'et share $ytaretin its ad&ertisin directly towards them( To this end) he hiredHennan Smith) an ad&ertisin

e+ecuti&e ,from the /ero news!a!er field, to lead an all6$lac' sales team) which had to $e cut due to the

onset of World War **(

*n 13=1;? On the other hand) it was a$le to use racism as a sellin !oint) attac'in Co'e.s reluctance to hire

$lac's and su!!ort $y the chairman of Co'e for sereationist @o&ernor of @eoria Herman Talmade(

>2? As a result) Pe!si.s mar'et share as com!ared to Co'e.s shot u! dramatically( After the sales team

&isited Chicao) Pe!si.s share in the city o&ertoo' that of Co'e for the first time(>2?

This focus on the mar'et for $lac' !eo!le caused some consternation within the com!any and amon its

affiliates( *t did not want to seem focused on $lac' customers for fear white customers would $e !ushed

away(>2? *n a meetin at the Waldorf6Astoria Hotel) Mac' tried to assuae the 9;; $ottlers in attendance

$y !anderin to them) sayinI ,We don.t want it to $ecome 'nown as a nier drin'(,>11? After Mac' left

the com!any in 139;) su!!ort for the $lac' sales team faded and it was cut(

History of Pepsi in Pakistan:

*n the 139;’s one of the most !otent $usiness community of Pa'istan) $rimmin

with the s!irit of *nde!endence from the late 13=;’s) decided to launch a local $rand of $e&eraes( Pa'istan -e&erae "imited created the $rand Pa'ola which isstill holdin on its uni7ue e7uity with the Pa'istanis within and outside the country(The Plant was situated in a 1);;; s7uare yard area in the hu$ of arachi industrialarea(

http://en.wikipedia.org/wiki/Ron_Brown_(U.S._politician)http://en.wikipedia.org/wiki/Walter_Mackhttp://en.wikipedia.org/wiki/Progressivismhttp://en.wikipedia.org/wiki/Progressivismhttp://en.wikipedia.org/wiki/African_Americanhttp://en.wikipedia.org/wiki/Niche_markethttp://en.wikipedia.org/wiki/Niche_markethttp://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/w/index.php?title=Hennan_Smith&action=edit&redlink=1http://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Edward_F._Boydhttp://en.wikipedia.org/wiki/Edward_F._Boydhttp://en.wikipedia.org/wiki/Six_pack_ringshttp://en.wikipedia.org/wiki/Six_pack_ringshttp://en.wikipedia.org/wiki/Ron_Brown_(U.S._politician)http://en.wikipedia.org/wiki/Ron_Brown_(U.S._politician)http://en.wikipedia.org/wiki/United_States_Secretary_of_Commercehttp://en.wikipedia.org/wiki/United_States_Secretary_of_Commercehttp://en.wikipedia.org/wiki/United_States_Secretary_of_Commercehttp://en.wikipedia.org/wiki/Pepsi#cite_note-latboyd-10http://en.wikipedia.org/wiki/Pepsi#cite_note-latboyd-10http://en.wikipedia.org/wiki/Ad_campaignhttp://en.wikipedia.org/wiki/Nobel_Peace_Prizehttp://en.wikipedia.org/wiki/Ralph_Bunchehttp://en.wikipedia.org/wiki/Ralph_Bunchehttp://en.wikipedia.org/wiki/Gordon_Parkshttp://en.wikipedia.org/wiki/Gordon_Parkshttp://en.wikipedia.org/wiki/Gordon_Parkshttp://en.wikipedia.org/wiki/Racial_segregationhttp://en.wikipedia.org/wiki/Racial_segregationhttp://en.wikipedia.org/wiki/Racial_segregationhttp://en.wikipedia.org/wiki/Jim_Crow_lawshttp://en.wikipedia.org/wiki/Pepsi#cite_note-capparellreview-9http://en.wikipedia.org/wiki/Ku_Klux_Klanhttp://en.wikipedia.org/wiki/Pepsi#cite_note-latboyd-10http://en.wikipedia.org/wiki/Pepsi#cite_note-latboyd-10http://en.wikipedia.org/wiki/Racismhttp://en.wikipedia.org/wiki/Governor_of_Georgiahttp://en.wikipedia.org/wiki/Governor_of_Georgiahttp://en.wikipedia.org/wiki/Herman_Talmadgehttp://en.wikipedia.org/wiki/Herman_Talmadgehttp://en.wikipedia.org/wiki/Pepsi#cite_note-nytboyd-8http://en.wikipedia.org/wiki/Pepsi#cite_note-nytboyd-8http://en.wikipedia.org/wiki/Caucasian_racehttp://en.wikipedia.org/wiki/Caucasian_racehttp://en.wikipedia.org/wiki/Pepsi#cite_note-nytboyd-8http://en.wikipedia.org/wiki/Pepsi#cite_note-nytboyd-8http://en.wikipedia.org/wiki/Waldorf-Astoria_Hotelhttp://en.wikipedia.org/wiki/Waldorf-Astoria_Hotelhttp://en.wikipedia.org/wiki/Waldorf-Astoria_Hotelhttp://en.wikipedia.org/wiki/Bottling_companyhttp://en.wikipedia.org/wiki/Bottling_companyhttp://en.wikipedia.org/wiki/Bottling_companyhttp://en.wikipedia.org/wiki/Pepsi#cite_note-11http://en.wikipedia.org/wiki/Ron_Brown_(U.S._politician)http://en.wikipedia.org/wiki/Walter_Mackhttp://en.wikipedia.org/wiki/Progressivismhttp://en.wikipedia.org/wiki/African_Americanhttp://en.wikipedia.org/wiki/Niche_markethttp://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/w/index.php?title=Hennan_Smith&action=edit&redlink=1http://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Edward_F._Boydhttp://en.wikipedia.org/wiki/Six_pack_ringshttp://en.wikipedia.org/wiki/Ron_Brown_(U.S._politician)http://en.wikipedia.org/wiki/United_States_Secretary_of_Commercehttp://en.wikipedia.org/wiki/United_States_Secretary_of_Commercehttp://en.wikipedia.org/wiki/Pepsi#cite_note-latboyd-10http://en.wikipedia.org/wiki/Ad_campaignhttp://en.wikipedia.org/wiki/Nobel_Peace_Prizehttp://en.wikipedia.org/wiki/Ralph_Bunchehttp://en.wikipedia.org/wiki/Gordon_Parkshttp://en.wikipedia.org/wiki/Racial_segregationhttp://en.wikipedia.org/wiki/Racial_segregationhttp://en.wikipedia.org/wiki/Jim_Crow_lawshttp://en.wikipedia.org/wiki/Pepsi#cite_note-capparellreview-9http://en.wikipedia.org/wiki/Ku_Klux_Klanhttp://en.wikipedia.org/wiki/Pepsi#cite_note-latboyd-10http://en.wikipedia.org/wiki/Racismhttp://en.wikipedia.org/wiki/Governor_of_Georgiahttp://en.wikipedia.org/wiki/Herman_Talmadgehttp://en.wikipedia.org/wiki/Pepsi#cite_note-nytboyd-8http://en.wikipedia.org/wiki/Pepsi#cite_note-nytboyd-8http://en.wikipedia.org/wiki/Caucasian_racehttp://en.wikipedia.org/wiki/Pepsi#cite_note-nytboyd-8http://en.wikipedia.org/wiki/Waldorf-Astoria_Hotelhttp://en.wikipedia.org/wiki/Bottling_companyhttp://en.wikipedia.org/wiki/Pepsi#cite_note-11


8/45

With the $oomin success of their $rand and their well 'nown re!utation ofenter!risin mar'etin and trade !enetration) Pa'istan -e&erae "imited easily

$ecame the taret of many a multinational com!anies who were interested inseedin their $e&erae $usinesses in this new land of tremendous o!!ortunity

dri&en $y its demora!hics( *n 13


9/45

drin'in $ottled water under the $rand name of A7uafina which is !roduced at a !lant located on su!er hihway and is PSKCA certified( Throuh its su$sidiarycom!any) MBs assir juice "imited) it is manufacturin juice under $rand nameSlice in PFT)@"ASS and Tetra !ac's(

With the &ision of $ecomin the larest $randed $e&erae manufacturin andsellin com!any) Pa'istan -e&erae "imited is marchin ahead and continues to

!ro&ide su!erior 7uality $e&eraes to the consumers with a 7uality $ac'u! ser&iceto the customers in the mar'et !lace(

Pa'istan -e&erae "imited) throuh another @rou! Com!any) MBs Pa'ola Products"imited) also !roduces !lain L fla&ored mil' in Tetra Pac' at its !lant on Su!erHihway( *t is mar'et leader in fla&ored mil' with a wide rane of different

fla&ored(

Pe!siCo SWOT analysis 8;1=

Strenths Wea'nesses

Product di&ersity

F+tensi&e distri$ution channel

Cor!orate Social Res!onsi$ility CSRD !rojects

Com!etency in merers and ac7uisitions

88 $rands earnin more than 1 $illion a year

Successful mar'etin and ad&ertisin cam!ains

Com!lementary !roduct sales

Proacti&e and !roressi&e

O&er6de!endence on Wal6Mart

"ow !ricin

Kuestiona$le !ractices usin ta! water $ut la$elin

mountain s!rin waterD

Much wea'er $rand awareness and mar'et share in $e&erae mar'et com!ared to Coca6Cola

Too low net !rofit marin


10/45

O!!ortunities Threats

@rowin $e&eraes and snac's consum!tion

in emerin mar'ets es!ecially -R*CD

*ncreasin demand for healthy food and

$e&eraes

Eurther e+!ansion throuh ac7uisitions

-ottled water consum!tion rowth

Sa&ory snac's consum!tion rowth

Chanes in consumer tastes

Water scarcity

#ecreasin ross !rofit marin

"eal re7uirements to disclose ne

information on !roduct la$els

Stron dollar

*ncreased com!etition from Snyder

Stren#t$s

1( Product di%ersity. Pe!siCo has se&eral hundreds of $rands) which includeI

car$onated and noncar$onated drin's) water) sa&ory and whole rain6$ased snac's(

Product di&ersification strenthens Pe!siCo $ecause it doesn’t ha&e to rely on few 'ey

!roducts or seasonal sales and isn’t sinificantly affected $y chanes in customer tastes(

8( &'tensi%e distribution c$annel. Pe!siCo !roducts are ser&ed to more than 1;

million stores !er wee' in more than 8;; countries(

4( CSR . The firm reconi5es its role in a society and enaes in education)

recyclin) water usae reduction) o$esity fihtin and other !rojects throuh Pe!siCo

Eoundation) thus increasin its $rand awareness and customer loyalty(

=( Competency in mer#ers and ac(uisitions. The 'ey to Pe!siCo $usiness

rowth is its successful merers and ac7uisitions of $e&erae) $ottlin and snac's

com!anies( Pe!siCo ac7uired such $rands as @atorade) Tro!icana) #oritos) Kua'er Oats

and many others(


11/45

9( )) brands earnin# more t$an *+ billion a year. The com!any doesn’t ha&e

to rely on one or two of its !roduct to $rin most of the re&enues( *nstead) Pe!si has 88

$rands that contri$ute sinificantly to its income) ser&in different industries and

satisfyin &arious consumer tastes(

:( Successful marketin# and ad%ertisin# campai#ns. More than 8 $illion

s!ent on ad&ertisin o&er 8;18 resulted in Pe!siCo’s rowin mar'et share o&er its main

com!etitors) includin Coca Cola Com!any) which s!ent e&en more on ad&ertisin(


12/45

=( ,eak brand a/areness. The Coca Cola Com!any has the larest share mar'et

of $e&eraes in the world and much stroner $rand awareness than Pe!si) !lacin it at

com!etiti&e disad&antae(

9( oo lo/ net profit mar#in. Pe!siCo’s net !rofit marin is 3(


13/45

8( ,ater scarcity. Water is $ecomin scarcer around the world and increases in

$oth cost and criticism for Pe!siCo o&er the lare amounts of water used for !roduction(

4( 5ecreasin# #ross profit mar#in. Pe!siCo’s ross !rofit marin was decreasin

o&er the !ast few years and may continue to decrease due to hiher water and other rawmaterial costs(

=( e#al re(uirements to disclose ne#ati%e information on product

labels. Some researches show that !articular inredients) consumed in e+tra lare

7uantities) in some of Pe!siCo !roducts could cause cancer( Eor this reason) many

o&ernments consider to !ass leislation that re7uires disclosin such information on

!roduct la$els( Products containin such information may $e !ercei&ed neati&ely and

lose its customers(

9( Stron# dollar. More than 9;N of Pe!siCo’s income is from outside 0S( #ue to

stron dollar !erformance aainst other currencies Pe!siCo’s income should fall(

:( 2ncreased competition from Snyder6s. Snyder’s increase its 0S sa&ory snac's

mar'et share $y 1(:N and almost all of it was ta'en from Pe!siCo(

SP model

STP sementation) taretin) !ositioninD analysis is used to study customers(


14/45

Market Se#mentation

As we 'now that Pe!siCo !ro&ides &arieties of $e&eraes such ascar$onatedsoft drin's) s!ort drin's) dairy6$ased drin's) enery drin's) fruit fla&ored$e&eraes) ready6to6drin' coffees) ready6to6drin' tea) mineral water andfro5en $e

&erae( These !roducts are mar'eted under $rand as Pe!si)Mountain #ew)@atorade) "i!ton) Star$uc's) Tro!icana) and so on( With these

!roducts) Pe!siCo aims to attract different rou!s of

consumers( There aretwo le&els in which Pe!si sements its mar'etI

#emora!hic and /ichemar'etin(

75emo#rap$ic

*n focusin on the Pe!si6Cola $e&erae !roduct) Pe!siCo has retained a

lonhistory of concentratin on youth as its main taret mar'et @eneration/e+tQ *t has s!ent $illions of dollars in tryin to woo the youn andnearlyyoun) im!lyin that Coca6Cola is for the older eneration( The reason

whyPe!si6Cola has fiercely tareted this mar'et is $ecause it is the larestamonstits users( Mar'et sement !rofiles ha&e shown that the majority of car$onated

$e&erae drin'ers are youth and middle ae !eo!le( Also) Pe!sicontinually tarets

the collee mar'et in which they s!end hue amounts of money to com!ete withCoca Cola in ac7uirin contracts with uni&ersitiesi(e(I CS0ED to ha&e soldre!resentation of their !roduct distri$ution( Pe!si’suse this $eha&iorist

sementation has $een a 'ey to the com!any’s success(Place of consum!tionI cocacola has sements the mar'et on the $asis of the !lace of consum!tion of the

$e&erae( Most of the consum!tion ta'es !lace on !remise such as cinemas)

railway stations) restaurants etc() while rest of it ta'es !lace in homes(

Product typeI Pe!si sements its mar'et on the $asis of ty!e of !roducts $ouht $ycustomers( The mar'et di&ided into cola !roducts and non6cola !roducts( Cola !roducts currently !ro&ide majority of the re&enues $ut the !ortion of non6cola !roducts is increasin(


15/45

Positionin#.Positionin is an essential com!onent 66 and s'ill 6 in ood mar'etin( Perce!tualma!s are used to determine the !osition of a !roduct) firm) !erson) ser&ice or idea(Positionin ma!s) or !erce!tual ma!s can $e sim!le) yet &ery effecti&e mar'etin

tools( One definition of Positionin Theory isI the science of perceptual strategy( *tis $ased on a theory that stratey can only $e !lanned in the mind of the consumer)not the mar'et!lace(

*t is im!ortant to understand the le&els of com!etition $ecause !ositionin a!!liesat all le&els of com!etition( Eor e+am!leI

Product "e&el e(() Pe!si &s( Co'eDCateory "e&el e(() Cola &s( Root $eerD

Cor!orate "e&el e(() Pe!si *nc( &s( Coca Cola Com!anyD*ndustry "e&el e(() -e&erae *ndustry &s( Snac' food *ndustryD

ar#etin#.What is taret( This is the real oalBo$jecti&e in mar'et that mar'eter want toreach(

As a sim!le 7uestions are IWhat !ercent of the !o!ulation uses the !roduct at all

What !ercent uses your $randHow does that com!are to com!etin $randsWhat is the demora!hic !rofile of the !roduct cateoryWhich media reach the users of this cateory

Marketin# Strate#y:

Selectin# Customers to ser%e:

Marketin# Se#mentation: Pe!si sements its mar'et in se&eral ways( Pe!si)

mainly sement their mar'et demora!hically assumin ae) income and family


16/45

si5e( Pe!si’s $eha&ioral sementation has $een a 'ey to the com!any’s success(Ae is one of the most sinificant !arts of the sementation of Pe!si( Pe!si

introduces Pe!si diet for the !eo!le who are sufferin from dia$etic and for thosewho are li'ely to a&oid suar and for the aed !eo!le s!ecially =; !lus( Pe!si

mainly !roduces the Pe!si cola the main customer of Pe!si cola is youn !eo!lewhose ae is 1; to 49(On income $asis Pe!si also sement their mar'et $y ma'in little !ac'( They offera com!etiti&e !rice rane to all class of !eo!le( They consider the economic

situation in our country( So they introduce Pe!si in different !rice for different the !eo!le whose income is different( They thin' a$out student) !oor !eo!le) andmiddle class !eo!le economic condition for their !ricin( Eamily si5e $asis is also

a $ase sementation for Pe!si( *n our society) there are many families with

different family si5e( So Pe!si is ser&ed into many si5e 89;ml) 9;;ml) 1") 1(9") 8" !ac'( Peo!le can easily choose a suita$le !ac' $ased on their family si5e(

ar#et Marketin#: The reason why Pe!si6Cola has fiercely tareted this

mar'et is $ecause it is the larest amon its users( Mar'et sement !rofiles ha&e

shown that the majority of car$onated $e&erae drin'ers are youth and middle ae !eo!le( Pe!si continually tarets the Schools) Collees) 0ni&ersities) restaurants)hotels) and fast food Stores( Eor this they always s!end hue amounts of money to

com!ete with Coca Cola in ac7uirin contracts with uni&ersities to ha&e sold

re!resentation of their !roduct distri$ution( Pe!si customers are mostly teenaersand youn adults $etween the aes of 1= to 83(

Marketin# Mana#ement Orientation:

Production concept: Pe!si always follows Production conce!t( They

always more focus more on 7uantity $ut less focus on 7uality( They


17/45

!roduce a hue amount of !roduct) So that the cost of the !roduction

decreases(

Marketin# Concept: Pe!si follows mar'etin conce!t( They always

hihliht their taret mar'ets needs and ma'e sure that the !roduct is

a&aila$le and hihly afforda$le for them(

Analy8in# t$e Marketin# &n%ironment:

Micro en%ironment for Pepsi:

Amount of

product

Low

erHig

herProduction

cost


18/45

$e company: Pe!siCo is the com!any which !roduces Pe!si(Suppliers: A-#0" MO/FM S0@AR RFE*/FR "T#) *@"OO -OTT"FRS

@RA#F S0@AR( Tan&irs’PFPS* CO"A CA/S SPFAFR D) Parte+ Plastics"td( P"AST*C C"OS0RFSD

Marketin# 2ntermediaries: A'in Fnter!rise) -A/@"A#FSH( A/SiiCom!uters) -A/@"A#FSH(

Customers: Pe!si customers are mostly youn rou! $etween the aes of 1= to

4;(

Competitors: Coca Cola) RC Cola) Red -ull etc are the com!etitors of Pe!si(Macro en%ironment for Pepsi:

5emo#rap$ic &n%ironment: *n the demora!hic en&ironment) mar'etersmust $e aware of worldwide !o!ulation rowthG chanin mi+es of aeG ethniccom!osition) and educational le&elsG the rise of nontraditional familiesG lareeora!hic shifts in !o!ulationG and the mo&e to micromar'etin and away frommass mar'etin( the world !o!ulation is showin ,e+!losi&e, rowth) totalin :(1

$illion in 8;;; and will e+ceed


19/45

ha&e a stron im!act on $usiness and Pe!siCo is always aware of economicen&ironment for Pe!si(

9atural &n%ironment: *n the natural en&ironment) mar'eters need to $e aware

of raw materials shortaes) increased enery costs and !ollution le&els) and thechanin role of o&ernments in en&ironmental !rotection( The earth.s rawmaterials consist of the infinite) the finite renewa$le) and the finite nonrenewa$le(

*nfinite resources) such as air and water) are $ecomin a !ro$lem such as watershortaes( Einite renewa$le resources) such as forests and food) must $e usedwisely( Eorestry com!anies are re7uired to reforest tim$erlands in order to !rotect

the soil and to ensure sufficient wood to meet future demand( Einite nonrenewa$leresources 6 oil) coal) !latinum) 5inc and sil&er will !ose a serious !ro$lem as the

!oint of de!letion a!!roaches( #ramatic rise in oil !rices can also create a renewedsearch for alternati&e enery forms( Some industrial acti&ity will ine&ita$lydamae the natural en&ironment( A$out =8 !ercent of 0(S( consumers are willinto !ay hiher !rices for ,reen, !roducts( This creates a lare mar'et for !ollution6

control solutions) such as scru$$ers) recyclin centers) and landfill systems(@o&ernments &ary in their concern and efforts to !romote a clean en&ironment(Many !oor nations are doin little a$out !ollution) larely $ecause they lac' the

funds or the !olitical will( Richer nations are a$le to hel! the !oorer nation’scontrol their !ollution) $ut e&en the richer nations today lac' the necessary funds(Eor Pe!si6Cola) the !ac'ain of Pe!si is closely related to the natural

en&ironment( So they always try to ma'e the !ac'ain of Pe!si in recyclinformat(

ec$nolo#ical &n%ironment: This is one of the most dramatic forces sha!in

!eo!le.s li&es( The economy.s rowth rate is affected $y how many major newtechnoloies are disco&ered( /ew technoloy also creates major lon6runconse7uences that are not always foreseea$le( Therefore) the mar'eter should

monitor the followin trends in technoloyI the !ace of chane) the o!!ortunitiesfor inno&ation and increased reulation( Many of today.s common !roducts werenot a&aila$le =; years ao( An increasin num$er of ideas are $ein wor'ed on and

the time $etween the a!!earance of new ideas and their successful im!lementationis all $ut disa!!earin( So is the time $etween introduction and !ea'

!roduction(3;N of all the scientists who e&er li&ed is ali&e today and technoloy


20/45

feeds u!on itself( Scientist today is wor'in on a startlin rane of newtechnoloies that will re&olutioni5e !roducts and !roduction !rocesses( Some of

the most e+citin wor' is $ein done in $iotechnoloy) com!uters andtelecommunications( Many com!anies are content to !ut their money into co!yin

com!etitors. !roducts and ma'in minor feature and style im!ro&ements( As !roducts $ecome more com!le+) the !u$lic needs to $e assured of their safety(Conse7uently) o&ernment aencies. !owers to in&estiate and $an !otentiallyunsafe !roducts ha&e $een e+!anded( Howe&er their inno&ation le&el is not so hih

$ut Pe!siCo always try to ma'e new inno&ation in Pe!si(

Political-e#al &n%ironment: Mar'eters must wor' within the many laws

reulatin $usiness !ractices and with &arious s!ecial6interest rou!s( -usiness

leislation has three main !ur!osesI to !rotect com!anies from unfair com!etition)to !rotect consumers from unfair $usiness !ractices and to !rotect the interests ofsociety from un$ridled $usiness $eha&ior( The laws are not always administeredfairlyG reulators and enforcers may $e la+ or o&er5ealous( Mar'eters must ha&e a

ood wor'in 'nowlede of the major law !rotectin com!etition) consumers andsociety( As more $usiness ta'es !lace in cy$ers!ace mar'eters must esta$lish new

!arameters for doin electronic $usiness ethically( Many com!anies ha&e

esta$lished !u$lic affairs de!artments to deal with these rou!s and issues( Anim!ortant force affectin $usiness is the consumerist mo&ement 6 an orani5edmo&ement of citi5ens and o&ernment to strenthen the rihts and !owers of

$uyers in relation to sellers( The com!any monitors the !olitical en&ironment ofthe many forein nations in which Pe!si is sold(

Social-cultural &n%ironment: *n the social6cultural arena) mar'eters must

understand !eo!le.s &iews of themsel&es) others) orani5ations) society) nature andthe uni&erse( They must mar'et !roducts that corres!ond to society.s core andsecondary &alues and address the needs of different su$cultures within a society(

Peo!le li&in in a !articular society hold many core $eliefs and &alues that tend to !ersist( Secondary $eliefs and &alues are more o!en to chane( Therefore)mar'eters ha&e some chance of chanin secondary &alues $ut little of chanin

core &alues( Fach society contains su$cultures( To the e+tent that su$ culturalrou!s e+hi$it different wants and consum!tion $eha&ior) mar'eters can choose

!articular su$cultures as taret mar'ets( Althouh core &alues are fairly !ersistent)


21/45

cultural swins do ta'e !lace( Today) youn !eo!le are influenced $y new heroesand new acti&itiesI Tier Woods) and e+treme s!orts( *t must also continue to

monitor the cultural en&ironments of the other countries in which it does $usinessof Pe!si(

Market Se#mentation

As we 'now that Pe!si is !ro&ided amon a hue !o!ulation which is called

mar'et( To distri$ute it and increasin the re&enue the mar'et should $esemented( Pe!si has semented their mar'et 'ee!in four major sementation&aria$les in their mind which areI

• @eora!hic

• #emora!hic

• Psychora!hic

• -eha&ioral

1eo#rap$ic Se#mentation:

@eora!hic sementation means di&idin the mar'et into different eora!hical

units such as nations) reions) states) countries) cities or e&en neih$orhood( Pe!sihas !ut little em!hasis to sement their mar'et eora!hically( They are doin

$usiness almost in ma+imum !laces around the world(

5emo#rap$ic Se#mentation:

#es!ite the lare customer $ase in the Soft #rin' industry) Pe!si !refers tosement itself as the $e&erae choice of the /ew @eneration) @eneration /e+t)or just as the Pe!si @eneration( These terms ado!ted in Pe!si’s ad&ertisin

cam!ains are what mar'eters refer to as @eneration U) which are !rofiled to $e $etween the aes of 12 to 83( *n addition) Pe!si shifted its focus to the rowinAmerican teenae mar'et in the 133;s $y formin e+clusi&e contracts withAmerican schools and de&elo!in ad&ertisin cam!ains such as The /e+t

@eneration and the Joy of Pe!si) featurin -ritney S!ears( Pe!si $elie&es that if


22/45

they can et this mar'et to ado!t their !roduct) they could esta$lish a loyalcustomer in a lon run(

Psyc$o#rap$ic se#mentation:

Psychora!hic sementation di&ides $uyers into different rou!s $ased on socialclass) lifestyle or !ersonality characteristics( Peo!le from same demora!hic rou!

can ha&e &ery different !sychora!hic ma'eu!s( Pe!si’s sementation has also $een em!hasi5ed !sycho ra!hically( Their $e&eraes are &ery much focusintowards lower and u!!er middle class as they can afford to drin' Pe!si( They ha&e

a !roduct li'e Mountain #ew a !articular drin' which is focused es!ecially whohas ad&enturous !ersonality( Their cam!ain of this drin' totally focuses toad&enturous youn !eo!le(

4e$a%ioral se#mentation:

-eha&ioral sementation di&ides $uyers into rou!s $ased on their 'nowlede)

attitudes) uses or res!onses to a !roduct( *n this sement) Pe!si has $eenconcentratin carefully( -ecause they offer in e&ery s!ecial occasions) for the

!eo!le who see' for $enefits off their !roducts) to their loyal customer $ase(

Occasional cases li'e reliious festi&alsG s!ecial days li'e mothers’ day) &alentine’sday) friendshi! day) any indi&idual’s $irthday or marriae ceremony or anni&ersary

in a word in e&ery s!ecial occasions there are !eo!le to whom $uyin Pe!si for cele$ration is must(


23/45

Sementation

Varia$les

#ata

Geographical

World reion AsiaCountry -anladeshCities All major cities

#ensity 0r$anClimate Tro!ical wet

Demographic

Ae 1=64;@ender Male) EemaleEamily Si5e 168) 46=) 9Eamily "ife Cycle Married) 0nmarried

Psychographic

Social Class Middle Class) 0!!er Class"ifestyle Actuali5es) -elie&ers) Eulfilled)

Achie&ers) Stri&ers) F+!erience ma'ers)

StrulersPersonality Ad&enturous

Behavioral

Occasions Parties) -irthdays) S!orts) Reularoccasions

-enefits Kuality) Taste0ser Status Eirst Time 0ser "oyalty Status StronReadiness Stae Aware) *nterested


24/45

Market ar#etin#:

Mar'et Taretin can $e carried out at se&eral different le&els( Com!anies cantaret &ery $roadly throuh 0ndifferentiated Mar'etin) &ery narrowly throuhMicromar'etin or somewhere $etween #ifferentiated Mar'etin and

Concentrated or /iche Mar'etin( There are four strateies of mar'et taretin(Pe!si follows the stratey of Concentrated or /iche Mar'etin( *n nichemar'etin com!anies oes after a lare share of one or a few sements or niches(

Throuh concentrated mar'etin) the firm achie&es a stron mar'et !osition $ecause of its reater 'nowlede of customer it ser&es in the niches it ser&es andthe s!ecial re!utation in ac7uires( Pe!si customers are mostly Teenaers and oun

Adults $etween the aes of 1= to 4;( *t also tarets at Schools) Collees)0ni&ersities) Homes) Restaurants) Hotels) and Stores They focused on &arietaldifferentiation since 133; $y introducin a strin of niche !roducts( To increase

&olume in order to counter flat Coca6Cola sales) Pe!si introduced Sierra Mist in8;;868;;4 to ta'e the !lace of


25/45

accordin to the 8;; countries where the $rand sells its !roducts( The $rand hasunderstood this !rinci!le while aoI thin' lo$al) act local( Coca is thus willin

to 'ee! the same core !roduct which is co'e) $ut it ada!ts the offer to local needs(They use strateic !ositionin in order to ha&e the same imae all around the

world) which is a success $ecause it is !ercei&ed today as a !art of daily lifee&erywhere( This !erce!tion of the $rand $y the consumer leads to a hih deree of loyalty and ma'es the !urchasin decision more automatic( Coca Cola has $eensuccessful $y usin 0ni7ue Sellin !re!osition as i%e t$e coke side of life;<related to joy and ha!!iness(

Consumers $asically associate this $rand with these emotions( When the name of Co'e is mentioned) the first thin that comes into mind is fun and entertainment(

Competition:

Co'e’s major com!etitor is PFPS* and there is no hesitation to say this $ecausee&eryone 'nows that and all the other cold drin's and water) coffee) tea is the

com!etitors( They com!ete in almost all the mar'ets worldwide( Coca Cola hashiher sales worldwide) thouh Pe!si Co dominates the 0S mar'et( There are theother !layers in &arious $e&eraes cateory) $ut none of them as larer as Coca

Cola or Pe!si Co( the new com!etition in the industry is to increase the !roduct !ortfolio and introduce new &ariants of car$onated drin's and non6car$onated

drin's(

Ma!or Competitors:

Consumers firstly decide that they are oin to ha&e a soft drin'( Then theycom!ete $rands with each other( "i'e they com!ete Co'e with Pe!si and S!rite

with


26/45

Strate#ies of 0uality:

After Micro and macro analysis -rand co'e is !rimarily role

1( Fnhance com!etition moments

8( When !eo!le watch cric'et

4( throuh commerciali5ation

=( Eun time thouh these strateies there could $e $etter understandin and $etter connection with the !u$lic( These are the 'ey consum!tion(

PC

Product life cycle mana#ement =PC>:

There are fi&e 'ey staes of the !roduct life cycleI

+> Pre-launc$ no sales and !rofit are made $ecause the !roduct is still in

de&elo!ment(

http://manifestedmarketing.com/2012/12/22/nissan-juke-unique-extension-strategies/http://manifestedmarketing.com/2012/12/22/nissan-juke-unique-extension-strategies/


27/45

)> 2ntroduction initial sales are made to inno&ators) consumers who enjoy tryin

new !roducts) $ut these are insufficient to recu!erate de&elo!ment costs

?> 1ro/t$ sales $ein to increase ra!idly as the !roduct ains !o!ularity amon

the early majority( *t is at this stae that !rofits are first enerated(

@> Maturity this is the lonest stae and enerates the majority of a !roduct’s

sales and !rofits from the late majority( To Xmil'’ the !roduct for as much !rofit as

!ossi$le) e+tension strateies are often im!lemented to !ro6lon the maturity stae(

> 5ecline e&entually all !roducts sto! sellin) such as VHS ta!es( As e+!ected)

sales $ein to decline until the !roduct is no loner !rofita$le(At each stae) mar'eters should ada!t their mar'etin strateies to the e+ternal

chanes in the mar'et !lace( "et’s ta'e a loo' at how Pe!siCo ha&e used

the !roduct life cycle to successful row Pe!si into one of the most consumed

drin's in the world(

Product life cycle of Pepsi

http://manifestedmarketing.com/2012/12/22/nissan-juke-unique-extension-strategies/http://manifestedmarketing.com/2012/03/29/apple-an-introduction-to-marketing-strateg/http://manifestedmarketing.com/2011/01/19/pepsico-environmental-sustainability/http://manifestedmarketing.com/2010/09/20/monopoly-revolution-product-development-life-cycle/http://manifestedmarketing.com/2012/12/22/nissan-juke-unique-extension-strategies/http://manifestedmarketing.com/2012/03/29/apple-an-introduction-to-marketing-strateg/http://manifestedmarketing.com/2011/01/19/pepsico-environmental-sustainability/http://manifestedmarketing.com/2010/09/20/monopoly-revolution-product-development-life-cycle/


28/45

Product ife Cycle of Pepsi:

+> Pre-launc$ B t$e +DEs

*n 1232) !harmacist Cale$ -radham de&elo!ed X-rads #rin'’) a formula desined aid diestion( After

stron interest from consumers in his !harmacy) -rad renames the drin' XPe!si6Cola’ and !urchases the

trademar' XPe! Cola’ for 1;;( The oriins of Pe!si are &ery similar to that of "uco5ade) which was also

first !roduced for medicinal !ur!oses(

Althouh 1;; does not a!!ear much) adjusted for inflation that amount of money in the 13th Century is

e7ui&alent to 891:(4= in 8;1=( This hihlihts the difficulties com!anies ha&e in the !re6launch !hases

with sur&i&in !eriods of neati&e cash6flow) lare research costs and de&elo!ment e+!enditure(

http://www.pepsistore.com/history.asphttp://www.pepsistore.com/history.asphttp://manifestedmarketing.com/2010/07/06/lucozade-market-development/http://manifestedmarketing.com/2010/07/06/lucozade-market-development/http://manifestedmarketing.com/2010/07/06/lucozade-market-development/http://www.pepsistore.com/history.asphttp://manifestedmarketing.com/2010/07/06/lucozade-market-development/


29/45

)> 2ntroduction B +DE)

-rad $ean sellin Pe!si6Cola and achie&ed sales of


30/45

with Pe!si6Cola only launchin in -rad’s !harmacies(

Ad%ertisin#: To enerate awareness) a cele$rity endorsement with race6car dri&er

-arney Oldfield a$o&eD was utilised(

Sales-promotion: Pe!si6Cola was not launched with any !romotions( Howe&er) if

!romotions are used at this stae they should aim to encourae consumers to trial the

!roduct(

?> 1ro/t$ B +D?Es-+DFEs

After $an'ru!tcy and then $ecomin ac7uired $y "oft *nc() Pe!si6Cola’s sales s'y6

roc'eted in the reat de!ression( Consumers were attracted $y the &alue6for6money

com!etiti&e !ositioninI 9 cents would $uy consumers 18 ounces of Pe!si6Cola) $ut

only : ounces of Coca6Cola(


31/45

Ob!ecti%es: #urin rowth) ainin mar'et share is critical( Hence) Pe!si6Cola was

mar'eted aressi&ely aainst Coca6Cola to encourae consumers to defect(

Product: As the mar'et $ecomes increasinly com!etiti&e it is im!ortant to continually im!ro&e the

!roduct( Hence) Pe!si6Cola now came in $ottles) rather than just soda fountains(

Price: To su!!ort the aim of ainin mar'et share) the low !rice !enetration stratey was one of the 'ey

reasons why the $rand rew massi&ely in this time !eriod(

Place: An e+tensi&e distri$ution networ' is needed to su!!ort ra!id sales rowthG therefore e+clusi&ity to

!harmacies ended and the !roduct $ecame a mainstream consumer ood(

Ad%ertisin#: *t is &ital to ca!ture the early majority stae) re7uirin that ad&ertisin was desined to

effecti&ely reach a mass audience( Eor e+am!le) Radio was selected as a medium $ecause of its low cost6

!er reach clic' here to listen to an ad from the 134;sQ #urin this time) the name was chaned to just

XPe!si’ to hel! differentiate the $rand from Coca6Cola( "astly) the 13


32/45

@> Maturity B +DEs B Present day

Since the 132;s Pe!si has $een in the maturity stae of the !roduct life cycle) hel!in the !arent com!any

earn almost 8; $illion in annual re&enue(

Ob!ecti%es: At this stae !roducts are most !rofita$le) which is why Pe!siCo are li'ely to consider Pe!si

as a Cash Cow and aim to ma'e as much !rofit as !ossi$le from the $rand(

Product: /ow that the !roduct is well esta$lished) entire ranes can $e introduced that act as e+tension

strateies to !rolon the most !rofita$le stae of the !roduct’s life( These include the hihly successful

Pe!si Ma+) to the disastrous Pe!si Raw(

Price: Pe!siCo and Coca6Cola clearly do not want to enter !rice6wars) which is a hih ris' durin this

&ery com!etiti&e stae( As a result) the !rice rarely fluctuates away from the mar'et a&erae(

Place: The !roduct now has a lo$al distri$ution to !enetrate emerin economies(

http://online.wsj.com/news/articles/SB10001424127887323478004578303720031975996http://manifestedmarketing.com/2010/07/19/audi-the-boston-matrix/http://manifestedmarketing.com/2010/07/19/audi-the-boston-matrix/http://manifestedmarketing.com/2012/12/22/nissan-juke-unique-extension-strategies/http://manifestedmarketing.com/2012/12/22/nissan-juke-unique-extension-strategies/http://manifestedmarketing.com/2012/12/22/nissan-juke-unique-extension-strategies/http://manifestedmarketing.com/2010/09/09/pepsi-raw-new-product-development/http://manifestedmarketing.com/2010/09/09/pepsi-raw-new-product-development/http://online.wsj.com/news/articles/SB10001424127887323478004578303720031975996http://manifestedmarketing.com/2010/07/19/audi-the-boston-matrix/http://manifestedmarketing.com/2012/12/22/nissan-juke-unique-extension-strategies/http://manifestedmarketing.com/2012/12/22/nissan-juke-unique-extension-strategies/http://manifestedmarketing.com/2010/09/09/pepsi-raw-new-product-development/


33/45

Ad%ertisin#: The main focus of Pe!si’s ad&ertisin durin maturity to is to differentiate the $rand( This

has $een mainly achie&ed throuh the use of cele$rity endorsements li'e -eyonce and Michael

Jac'son to !osition the !roduct as a youner and edier alternati&e to Coca6Cola

Sales-promotion: To 'ee! consistent with the $rand’s &alue6for6money !ositionin) Pe!si fre7uently

ha&e $oth &alue increasin and &alue addin offers( An e+am!le of the former is offerin larer $ottle

si5es still to this day than Coca6ColaG and the latter can $e seen in the com!etitions ad&ertised on

Pe!si’s $ottles

(

> 5ecline B sometime in t$e future

#es!ite rowin consumer interest in healthier lifestyles) sales of Pe!si show no sins of slowin down in

the immediate future( Reardless of this) it is recommended that Pe!sico ha&e the followin strateies

ready to $e $e im!lemented in the e&ent of the !roduct enterin decline(

Ob!ecti%es: Cost6reduction is 'ey at this stae to hel! the $rand remain !rofita$le des!ite eneratin

fewer sales(

Product: The rane should $ecome rationali5ed) and may $e reduced to just Pe!si to le&erae economies

of scale and minimi5e costs(

http://manifestedmarketing.com/2013/11/09/hp-intel-nissan-corporate-celebrity-endorsements/http://manifestedmarketing.com/2013/11/09/hp-intel-nissan-corporate-celebrity-endorsements/http://manifestedmarketing.com/2013/11/09/hp-intel-nissan-corporate-celebrity-endorsements/http://rollingout.com/photos/celebrity-photos-photos/celebrities-who-have-endorsed-pepsi-other-than-beyonce/http://rollingout.com/photos/celebrity-photos-photos/celebrities-who-have-endorsed-pepsi-other-than-beyonce/http://rollingout.com/photos/celebrity-photos-photos/celebrities-who-have-endorsed-pepsi-other-than-beyonce/http://manifestedmarketing.com/2013/11/09/hp-intel-nissan-corporate-celebrity-endorsements/http://rollingout.com/photos/celebrity-photos-photos/celebrities-who-have-endorsed-pepsi-other-than-beyonce/http://rollingout.com/photos/celebrity-photos-photos/celebrities-who-have-endorsed-pepsi-other-than-beyonce/


34/45

Price: The !rice could $e reduced further to increase sales amon !rice6sensiti&e consumers and $e an

effecti&e ad&ertisin cue for this low in&ol&ement !roduct(

Place: The !roduct now returns $ac' to selecti&e distri$ution to focus efforts on just the few remainin

outlets that enerate !rofits on Pe!si(

Ad%ertisin# and Sales Promotion: *t can $e recommended that Pe!siCo could o as far as com!letely

cuttin ad&ertisin and sales !romotion to further reduce o&erheads(

*n summary) the !roduct life cycle of Pe!si is a reat $usiness case study that $oth students and manaerscan learn from( They 'ey !oints to remem$er are that mar'etin strateiesneed to $e ready forim!lementation) $efore the !roduct enters each !hase of the life cycle) otherwise o!!ortunities are missedand the $rand $ecomes reacti&e to chane(

http://manifestedmarketing.com/2012/03/29/apple-an-introduction-to-marketing-strateg/http://manifestedmarketing.com/2012/03/29/apple-an-introduction-to-marketing-strateg/


35/45

Product strate#ies

Pe!si Product stratey

Products of Pe!si6Cola in the car$onated soft drin' 0S mar'etI

Pe!si /atural

Pe!si /e+t

Pe!si One

Pe!si Throw$ac'

Pe!si Wild Cherry

Caffeine Eree Pe!si

#iet Pe!si

#iet Pe!si "ime

#iet Pe!si Vanilla

#iet Pe!si Wild Cherry

Caffeine Eree #iet Pe!si


36/45

Pac'ainI

As any oder $e&erae manufacturer) Pe!si is committed to en&ironmental uidelines) in order to ensurethat !ac'ain has as little im!act as !ossi$le on the en&ironment


37/45

PFPS* */@RF#*F/TSI

,ater

At least 2:N of soft drin' is !urified water( *n the case of diet soft drin's water com!rises around 3:N(

S/eeteners

Such as suar sucrose from suar caneD or non6nutriti&e sweeteners( The most !o!ular and most widelynon6nutriti&e sweetener used is As!artame) $ein 8;; times sweeter than suar) is used in &ery

small 7uantities( Pe!si Ma+ and Pe!si "iht use a dual sweetener system) as!artame and acesul!hame

!otassium( The latter is 4;; times sweeter than suar) re7uirin e&en less to sweeten the soft drin'(


38/45

3la%ors

Pe!si uses fla&ors to de&elo! characteristic tastes associated with its $e&eraes( These come from a

&ariety of sourcesG natural) artificial and nature identical( F+am!les of fla&ors used in the manufacture of

soft drin's include natural fla&orins from ola nut) and fruit(

Carbon 5io'ide

Fffer&escence i&es soft drin's their s!ecial $u$$ly a!!eal and is added durin !roduction $y injectin

C;8 into the !roduct on the way to the filler(

Colors

Colors are added to Pe!si Cola !roducts to enhance the esthetic a!!eal and a!!earance of !roducts

These may $e $oth natural and artificial

Preser&ati&es

Certain !reser&ati&es are used in soft drin's to ensure micro$ial sta$ility and !re&ent s!oila

Pricin# Strate#ies:

The amounts of money chared for a !roduct PFPS* PFREFCTD( Price of !roduct

should $e that which i&es ma+imum $enefit to the com!any and which i&esma+imum satisfaction to the customer(

Eollowin factors Pe!si 'e!t in mind while determinin the !ricin stratey(

Price should $e set accordin to the !roduct demand of !u$lic(


39/45

Price should $e that which i&es the com!any ma+imum re&enue(

Price should not $e too low or too hih than the !rice com!etitor is charin

from their customers otherwise no$ody will $uy your !roduct(

Price must $e 'ee!in the &iew of your taret mar'et(

Rates:

)E ml-----------------------------------RS. ).EEG-

EEml------------------------------------RS. @E.EEG-

+EEEml----------------------------------RS. .EEG-

+EEml----------------------------------RS. E.EEG-

))Eml----------------------------------RS. +EE.EEG-

5istribution C$annel of Pepsi:

Mar'etin channels are sets of interde!endent orani5ation in&ol&es in the !rocess of ma'in a !roduct or ser&ice a&aila$le for use or consum!tion(-ychannel distri$ution of Pe!si means the intermediaries or the !rocess throuh

which Pe!si is transferred from the !roducer to the ultimate users( There are a lotof intermediaries $etween Pe!si !roducers and consumers( Some intermediariesli'e wholesalers and retailers $uy and resale the !roduct( They are 'nown asmerchant middle men(

2ntensi%e 5istribution:

Pe!si Co follows an intensi&e distri$ution stratey to distri$ute Pe!si( To su!!ort

their uni&ersal feature they want to !lace their !roduct in as many outlets as

!ossi$le(

5istribution Model of Pepsi:

Pe!si uses two ty!es of distri$ution model to distri$ute the !roduct amon theconsumers( They are


40/45

#irect #istri$ution System *ndirect #istri$ution System

5irect 5istribution System:

Pe!si uses its direct distri$ution system to deli&er su!!liers( *t Su!!lies the !roductdirectly with

• P*YYA H0T• EC

Accordin to the mar'etin channel Pe!si uses 5ero le&el of mar'etin channels( *tmeans

We can see there are no intermediaries $etween manufacturer and consumer( This

sinle ty!e of mar'etin channel is maintained $y Pe!si(

2ndirect 5istribution System:

*n this system) there are a lot of intermediaries such as distri$utors) retailers)wholesaler etc( To ma'e the !roduct a&aila$le at the riht !laces at the riht time inthe mar'et) the sales de!artment of Pe!siCo Com!any !ays major attention on

controllin the channel of distri$ution( The nature of the channel is as followsI6

Manufactu

rer

Consu

mer

DISTRIBUT

ORS

PEPSI

WHOLESA

LER


41/45

So accordin to the mar'etin channel Pe!si uses 86le&el mar'etin channel( *t

means

9umber of 2ntermediaries:

Pe!si Pro&ides direct and indirect em!loyment of 1) 9;) ;;; !eo!le includin

su!!liers and distri$utorsD(

5istributors:

#istri$utors fre7uently ha&e a $usiness relationshi! with manufactures that theyre!resent( The distri$utors of Pe!si maintain e+clusi&e $uyin areements thatlimit the num$er of !artici!ants( The distri$utor $ecomes the com!any’s direct

!oint of contact( #istri$utors don’t sell the !roduct directly to consumers( At firstPe!siCo su!!lies Pe!si to the distri$utors( Then they resale the !roduct to

wholesaler or retailer( Accordin to htt!IBBwww(e+!orters(sB) there are


42/45

S0/R*SF EOO#ST0EE JSC) V*FT /AM F+!ortin Eamous6-rand Pe!si Soft#rin's 44;ml(D

,$olesalersI

The wholesalers of Pe!si enerally $uy a lare 7uantity of !roducts directly fromdistri$utors or the com!any( Then they resale the !roduct to the retailers(

Accordin to htt!IBBwww(e+!orters(sBthere are


43/45

Eor ad&ertisin) it used !rinted and electronic media( F&ery news!a!er andmaa5ine carries Pe!si ad&ertisements that ma'e the !eo!le interested toward it(

Ad&ertisement of Pe!si are eye catchin and attracti&e( Throuh ad&ertisin itinforms the consumer a$out new $rands and fla&ors( Pe!si desins their

ad&ertisement cam!ain focusin on the taret mar'ets( They research for the needof !eo!le $efore ma'e the ads(

Sale promotion: Pe!si has used a &ariety of sales !romotions o&er the years(

They ha&e used cele$rity such as Michal Jac'son) -eyonc’ for endorsements(This has $een shown with the use of -eyoncZ[(

Mic$al ackson promotin# Pepsi

They ha&e also had essay contest to !romotions throuh schools( They ha&ei&eaways in stores and cou!on ad&ertisement in news!a!ers(

Public relation:

Pe!si is the first !roduct to res!ond to consumer !reference with lihtweiht)

recycla$le) !lastic $ottles( *n addition) different a!!roaches of !romotionalcam!ains such as !ress releases ha&e $een im!osed so as to ma'e the !roductmore a!!ealin to the taret mar'et and to ma'e these !roduct mar'eta$le(

Personal sellin#:

http://thepotomacreporter.com/nutrition/1131http://thepotomacreporter.com/nutrition/1131


44/45

Pe!si use !ull stratey for sellin the !roduct( *n e&ery occasion Pe!si $rinss!ecial offers( "i'e) they reduce the !riceG i&e e+tra 7uantity of drin's in the same

!rice(

Publicity:

Eor !u$licity Pe!si use social media such as Eace -oo'( /ot only that Pe!si use

ouTu$e to !romote its !roduct( *t dri&es !u$lic attention toward the !roduct(Pe!si also use $rand am$assador and s!onsor cric'et team and world cu! for

!u$licity(

5irect Marketin#:

Pe!si uses its direct mar'etin to distri$ute their !roduct throuh P*YYA H0T)

EC etc( More than that) they use ecommerce Such as Refreshment Ser&icesPe!si(com to mar'et the !roduct(

Recommendation:

• Since there are older !eo!le and Pe!si has $een traditionally a youn

!eo!le’s drin') Pe!si will ha&e to stimulate consum!tion $y older mem$ers

of society• Pe!si uses Plastic $ottles and cans which can $e harmful for society( So

Pe!si should $e !roduced more in recycla$le $ottle• /eed to im!ro&e PR acti&ities in ur$an areas• *n our country) with $rand name !eo!le !refer Pe!si 84N $ut without $rand

name it is 91N( So need to im!ro&e its $rand &alue(• Should increase !romotion stratey to introduce new !roduct line li'e Pe!si

ne+t) Pe!si 5ero etc(

Conclusion:

Pe!si has $een successful in eneratin !rofits in this e+tremely ri&alries

industry( What the com!any should do now is em!loy a stratey that now onlyaddresses its own deficiencies in an effort to row mar'et share) $ut one that will


45/45

increase the o&erall si5e of the !ie( This stratey) in the end) will allow Pe!si torow and sustain a$o&e6a&erae returns(

ReferencesI

• Pe!sihtt!IBBwww(!e!si!roductfacts(comBor\!usa(1;:

marketing project of pepsi

Documents